Systems and methods for purchasing, invoicing and distributing items

ABSTRACT

A method for supplying items to dispensing units that hold at least one type of item and a record of inventory levels comprises periodically sending restocking information from the dispensing units over a network to a server computer. Ordering information is generated for the items to be restocked based on the restocking information. The ordering information is electronically sent to one or more supplier computers to order items to be restocked into the dispensing units.

BACKGROUND OF THE INVENTION

This invention relates generally to the field of inventory systems, andin particular to inventory systems having point of use dispensers. Morespecifically, the invention relates to automated techniques forreordering items (or ordering new items) for the dispensers, filling theorders, confirming receipt of the orders and providing payment. Theinvention also relates to techniques for integrating the ordering andpayment processes of such inventory systems with existing accountingsystems to make the overall business process more versatile andefficient.

The ability to effectively and efficiently supply items to end users isan important part of today's world economy. Common types of supply itemsthat are of interest to the invention include manufacturing, repair andoperational (MRO) supplies among others. As inventory levels of suchitems become low, a reordering process may be used to replenish theitems. This process involves determining the types and quantities ofitems to reorder, as well as suppliers of the items. For example, abusiness establishment may wish to replenish its shelves with par levelsof the same types of items. In some cases, however, a replacement itemmay be desired. Further, the establishment may wish to change suppliersdue to poor service, excessive prices, or the like. Unfortunately, theability to track inventory levels, as well as to identify suppliershaving the ability to timely supply requested items at an acceptableprice can be challenging.

The reordering process may also involve a business's accountingdepartment. For example, the accounting department may be responsiblefor taking a written reorder request and generating a written purchaseorder which is then sent to a supplier, e.g., by mail or facsimile.Since the accounting department generates and sends the purchase order,it is difficult to perform an independent review of the purchase orderin order to confirm the order or change the order prior to sending.Further, it is difficult to identify other suppliers that may be able toship the items sooner and/or at a lower price.

Once the supplier receives a purchase order, the supplier attempts tofill the order. However, in some cases, the supplier may not have anadequate supply of the requested items. As a result, the missing itemsmay be placed on back order, and the available items shipped against thepurchase order. When the end user receives a shipment, the end user mustconfirm receipt and notify the accounting department. This is oftenaccomplished by having a dock worker signing a receipt from the supplierwhen the items are unloaded. This receipt is then manually sent to theaccounting department for payment.

Such a process is challenging to the accounting department who mustreconcile the items shipped with the items ordered. Further, thewarehouse must update their inventory levels to make sure that theshelves have a par level of each of the items. This can be challengingwhen working from a signed receipt, especially when only a partialshipment is received.

Hence, this invention is related to inventory systems that utilize pointof use dispensers that have the ability to maintain a record of currentinventory levels. The invention is also related to techniques for theautomated ordering of items, confirming the receipt of an order, andgenerating payment. The invention is further related to techniques foridentifying alternative suppliers and for integrating the orderingprocess with existing accounting systems to provide he ability to reviewa purchase order and to approve and/or alter the purchase order beforebeing sent to a supplier.

SUMMARY OF THE INVENTION

In one embodiment, a method is provided for supplying items to aplurality of dispensing units. The method utilizes a plurality ofdispensing units that each hold a plurality of at least one type ofitem. Conveniently, these items may be held on a consignment basis.Further, the units each have a processor and a memory for storing arecord of inventory levels of each item and transaction information.Periodically, restocking information that includes a restock quantityfor each item is sent from the dispensing units over a network to aserver computer. Ordering information for the items to be restocked isthen generated based on the restocking information, and the orderinginformation is electronically sent to one or more supplier computers toorder items to be restocked into the dispensing units.

Conveniently, the server computer may be used to poll the dispensingunits over the network to obtain the quantities of the items to berestocked. Further, the server computer may be used to generate theordering information by determining supplier information for the itemsto be ordered.

In one particular aspect, the ordering information is electronicallysent from the server computer to an application computer having a hostedprocurement application. In this way, the hosted procurement applicationmay be accessed to view the ordering information. For example, a usermay remotely access the hosted procurement application using any type ofuser computer that is connectable over a network, such as the Internet,to view the ordering information on a display screen. Conveniently, theuser computer may include a web browser to view one or more pages on thedisplay screen and to permit the ordering information to be approved,modified or canceled. As one specific example, the user may select othersuppliers and/or manufacturers for the items to be restocked. This maybe accomplished, for example, by electronically posting a list ofsuppliers as well as manufactures of items carried by the suppliers andtheir associated prices to permit manual selection of the suppliers andmanufacturers. As another example, the hosted procurement applicationmay be used to electronically post desired items and quantities topermit suppliers to provide electronic quotes for supplying the items.In some cases, the user may wish to order items that are not currentlystocked in the dispensing units. Conveniently, the hosted procurementapplication may also be used to order items that are not on theaggregated demand list.

In another aspect, the ordering information may be sent from the hostedprocurement application to an electronic requisition and purchasingsystem which is used to generate one or more electronic purchase ordernumbers and to electronically send the purchase order numbers back tothe hosted procurement application. The hosted procurement applicationmay then be used to electronically send the purchase order numbers andthe supplier information to a business portal computer. In turn, thebusiness portal computer may be used to electronically send the purchaseorder numbers to various supplier computers for order fulfillment.

In another particular aspect, the supplier may electronically send anadvanced shipping notice to the business portal computer, which may thenbe forward on to the server computer via the hosted procurementapplication. The advanced shipping notice includes information on itemsto be shipped, their quantities and a date of shipment. For example, insome cases, some of the ordered items may not be in stock and will needto be backordered. The advanced shipping notice may contain this type ofinformation. The server computer may then electronically sendinformation contained in the advanced shipping notice to the dispensingunits to apprise the dispensing units of the items and quantities thatare to be shipped for restocking into the dispensing units. In caseswhere the ordered items are not intended to be placed into a dispensingunit, information contained in the advanced shipping notice may beelectronically sent from the hosted procurement application to the usercomputer.

Following shipment of the items listed in the advanced shipping notice,the items may be restocked into the dispensing units, and a record maybe produced indicating the items that were actually received in theshipment and restocked into the dispensing units. Conveniently, thedispensing units may be restocked by simply pressing a restock button onthe dispensing unit. Since the dispensing unit processor has a record ofitems to be restocked (from the advanced shipping notice), the shippeditems may simply be placed into the dispensing unit. A correspondingitem button is touched once for each item placed into the dispensingunit to record what items were actually shipped and once again toacknowledge that the quantity restocked is the same as the quantitycontained in the record from the advance shipping notice. The dispensingunits may then be used to reconcile the restocked items with theadvanced shipping notice, and to electronically send a confirmationreceipt to the server computer. The electronic receipt may then beforwarded from the server computer to the suppliers and to theelectronic requisition and purchasing system. Using the electronicreceipt, an electronic invoice may be generated by the supplier and maybe electronically sent to the business portal computer and the hostedprocurement application. Based on the electronic invoice, the electronicrequisition and purchasing system may be used to generate payment foreach supplier.

In another embodiment, the invention provides an exemplary system forsupplying items to a plurality of dispensing units that each hold aplurality of at least one type of item. Optionally, these items may beheld on a consignment basis. The dispensing units also have a processorand a memory for storing a record of inventory levels of each item. Thesystem includes a server computer that is connectable to the dispensingunits over a network to permit restocking information to be transmittedfrom the dispensing units to the server computer. The server computer isconfigured to generate ordering information for the items to berestocked based on the restocking information, and to electronicallysend the ordering information to one or more supplier computers to orderitems to be restocked into the dispensing units.

In one aspect, the server computer is configured to periodically pollthe dispensing units over the network to obtain the quantities of theitems to be restocked. The server computer may also be configured toassociate suppliers with the items to be ordered. The server computermay then be used to electronically send the ordering information to anapplication computer having a hosted procurement application.

Conveniently, a user computer having a display screen may be used toaccess the hosted procurement application to view the orderinginformation on the display screen. Further, the hosted procurementapplication may be used to produce one or more pages on the displayscreen of the user computer to permit the ordering information to beapproved, modified or canceled.

The application computer may be used to send the approved orderinginformation to an electronic requisition and purchasing system that isconfigured to generate one or more electronic purchase order numbers andto electronically send the purchase order number to the applicationcomputer. The application computer may further be configured toelectronically send the purchase order number and the supplierinformation to a business portal computer that is configured toelectronically send the purchase order number to the supplier computerbased on the supplier information.

In one aspect, the supplier computer may be configured to electronicallysend an advanced shipping notice to the business portal computer fortransmittance to the server computer. The advanced shipping notice mayinclude information on items to be shipped, their quantities and a dateof shipment. In another aspect, the application computer may includecode to electronically send information contained in the advancedshipping notice to the user computer for items that are not stocked inthe dispensing units. In still another aspect, the server computer mayinclude code to electronically send information contained in theadvanced shipping notice to the dispensing units to apprise thedispensing units of the items and quantities to be shipped forrestocking into the dispensing units.

In one aspect of the system, the dispensing units may be configured toreconcile any restocked items with the advanced shipping notice and toelectronically send a confirmation receipt to the server computer. Theserver computer may include code to electronically send the receipt tothe supplier computers and to the electronic requisition and purchasingsystem. With such a configuration, the supplier computers may includecode to generate an electronic invoice based on the receipt, and toelectronically send the invoice to the business portal computer and theapplication computer. The application computer may then be configured toelectronically transmit the electronic invoice to the electronicrequisition and purchasing system for payment generation.

In yet another embodiment, the invention provides a hosted procurementapplication that comprises a computer readable medium having orderinginformation on items and quantities to be stocked into a plurality ofdispensing units. The ordering information includes suppliers of theitems. The hosted procurement application further includes code topermit access to the ordering information over a network such that theordering information may be approved, modified, or canceled over thenetwork. Code is also provided to transmit the ordering information toan electronic accounting system to generate an electronic purchaseorder.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a perspective view of one embodiment of a dispensing unit thatmay be used in tracking inventory levels according to the invention.

FIG. 2 is a perspective view of an alternative dispensing unit that maybe used in tracking inventory levels.

FIG. 3 schematically illustrates a process for polling dispensing unitsusing a server computer and generating a restock request using anadministrative computer according to the invention.

FIG. 3A is a side view of a shelf from one of the dispensing units ofFIG. 3.

FIG. 4 schematically illustrates a process for accessing a hostedprocurement application of the administrative computer of FIG. 3 toapprove, modify or cancel an order.

FIG. 5 schematically illustrates an electronic requisition andpurchasing system to provide purchase order information for the hostedprocurement application of FIG. 4.

FIG. 6 schematically illustrates an e-business portal that isconnectable to multiple market sites and that is configured to receivepurchase orders from the hosted procurement application of FIG. 5.

FIG. 7 schematically illustrates the transmission of purchase ordersfrom the e-business portal of FIG. 6 to multiple supplier computers.

FIG. 8 schematically illustrates the sending of an advanced shippingnotice from one of the supplier computers of FIG. 7.

FIG. 9 schematically illustrates the sending of the advanced shippingnotice to the dispensing units and the end user computer.

FIG. 10 schematically illustrates the shipping of items from thesupplier to the end user or the dispensing units.

FIG. 11 schematically illustrates the sending of an electronic receiptto the server computer.

FIG. 12 schematically illustrates the sending of the electronic receiptto the supplier computers and to the electronic requisition andpurchasing system.

FIG. 13 schematically illustrates the sending of an electronic invoiceto the electronic requisition and purchasing system for paymentgeneration.

FIGS. 14A–14C provide flow diagrams illustrating methods in accordancewith embodiments of the invention.

DESCRIPTION OF THE SPECIFIC EMBODIMENTS

The invention provides systems and methods for replenishing supplies inan automated manner. For example, the invention may be used toautomatically reorder supplies based on the mere act of removing thesupplies from a storage location. Conveniently, the invention may beused to automatically determine an aggregated demand list for suppliesheld in a variety of locations, such as dispensers, storage sites, andthe like. The aggregated demand list may then be used with an automatedsystem to reorder the supplies.

The invention provides the opportunity to apply work flow rules(approval rules) to requisition the supplies. For example, prior toordering the opportunity is provided to receive a purchase order, toreview the purchase order, and then to acknowledge or change the order.For instance, a different supplier may be selected or the type of itemmay be changed. After a supplier receives the order, the supplier maysend an advanced shipping notice to permit synchronization ofreplenished supplies with the quantities ordered. Further,acknowledgment of the shipped quantities may be made through use of an855 type purchase order acknowledgment. Once the acknowledgment is made,the supplier may generate an electronic invoice to permit automatedpayment.

The invention may be used with essentially any type of item or supply.Merely by way of example, the invention may be used with manufacturer,repair and operations (MRO) supplies, medical and pharmaceuticalsupplies, and the like. Further, these supplies may be stored at anylocation or within any cabinet or dispensing device having the abilityto maintain an electronic record of item removal and replacement.

One way to dispense items, such as MRO supplies, is by the use ofdispensing units that have the ability to maintain a record of inventorylevels. For example, the dispensing unit may have touch buttons or othersensors that record removal and/or replacement of items into thedispensing unit. The dispensing units also include a processor and anassociated memory to record inventory levels. Conveniently, thedispensing units may be coupled to a network to permit inventorytracking for a group of dispensing units. Examples of dispensing unitsthat may be used with the invention include those described in U.S. Pat.Nos. 5,805,455; 5,80,456; 5,745,366; 5,905,653; 5,927,540; 6,039,467;and PCT application Nos. 94/07841 and 97/22379, the complete disclosuresof which are herein incorporated by reference. However, the invention isnot intended to be limited to only such dispensing units.

One embodiment of such a dispensing unit is shown in FIG. 1. Briefly,the dispensing unit 10 includes an enclosure 12 and a plurality ofadjustable shelves 14. Optionally, the enclosure 12 can be divided intoa plurality of compartments 16 to increase the number of shelves 14 thatcan be disposed in the enclosure 12. Each shelf 14 can be furthersubdivided to form a plurality of storage locations 18. Disposed on theshelves 14 and near each storage location 18 are touch-sensitive buttons20. The buttons 20 are connected to a processor 22 which receivessignals from the buttons 20 when actuated.

The buttons 20 are disposed on the shelves 14 so that each storagelocation 18 is associated with a button 20. When an item is to be placedin or removed from a shelf 14, the button 20 in close proximity to thestorage location 18 holding the item is actuated. Actuation of thebutton 20 sends a signal to the processor 22 to record removal of anitem from or placement of an item into that particular storage location18.

A return item button 23 is disposed at the end of each shelf 14.Actuation of the return item button 23 sends a signal to the processor22 to place the buttons 20 on that particular shelf 14 in a credit mode.An item can then be returned to one of the storage locations 18 on thatparticular shelf 14, and the associated button 20 depressed to recordreplacement of the item.

A plurality of visual indicators 24 are also disposed on the shelves andnear each of the buttons 20 so that each button 20 has a correspondingvisual indicator 24. If the user presses a button 20 to send a signal toprocessor 22 that the user is removing an item, the corresponding visualindicator 24 lights to provide visual confirmation of the removal of theitem. The visual indicators 24 are also used to assist in locating anitem to be removed from the dispensing unit 10. The processor 22contains a list of all of the items held in the dispensing unit 10. Fromthis list, a user can select the desired item the user wishes to locateby entering the selection into the processor 22. The visual indicatorcorresponding to the selected item will flash directing the user to theitem. In another removal method, a user can select the desired item andquantity to be removed by entering the selection into the processor 22.The processor 22 then sends a signal to actuate the visual indicator 24in close proximity to the storage location 18 having the item.

The dispensing unit further includes a plurality of doors 26 which canbe used to provide security for the items held in the unit 10. The doors26 are preferably transparent and can be locked to prevent access to theitems in the unit.

Another embodiment of a dispensing unit 30 is illustrated in FIG. 2.Dispensing unit 30 comprises a cabinet 32 having a plurality ofretractable drawers 34. Although shown with 12 drawers, the number ofdrawers may be varied. Conveniently, cabinet 32 rests upon a pluralityof wheels 36 which permit the dispensing unit 30 to be wheeledthroughout the end user's facility.

Dispensing unit 30 further includes a processor (hidden within cabinet32) and a keyboard 38 for entering various information into theprocessor. For example, keyboard 38 may be employed to enter useridentification information, requests for item removal, and the like intothe processor. Optionally, dispensing unit 10 may further include asecond entry device 20 which is connected to the processor and includesa screen 42 which allows the user to scroll through various lists ofinformation in order to select a highlighted item or to enter an itemremoval request. Conveniently, a printer 44 is provided on cabinet 32 toprint various reports generated by the processor. A card reader 46 mayalso be used to input various information into the processor, such asuser or patient identification information.

Referring now to FIGS. 3–14, a system and method for replenishing itemsin an automated manner will be described. The process utilizes aplurality of dispensing units 50 that are each supplied with multipleitems of the same or different types. Dispensing units 50 may beconfigured in a manner similar to the dispensing units of FIGS. 1 and 2as just described. In this way, dispensing units 50 may maintain arecord of items removed and replenished. For example, dispensing units50 may be configured as point of use dispensers that are constructed ofa cabinet 52 having multiple shelves 54 for storing items. A computer 56having a processor and memory are provided to maintain a record of theitems within cabinet 52 as well as other transaction in data. Removaland replacement of items may be recorded by use of push buttons 58 in amanner similar to that described with other embodiments. In this way,dispensing units 50 may maintain stock levels electronically. Forexample, shown in FIG. 3A is a side view of one of the shelves 54 havingpush buttons 58 and a set of lights 59 that are adjacent to the pushbuttons. One of the lights may be lighted to guide a user to theappropriate location on shelf 54 where a requested item is located. Oncethe item is removed, the adjacent push button 58 may be pressed a numberof times according to the number of items removed. A return item button61 is used to place dispensing unit 50 into restock mode.

Dispensing units 50 include appropriate electronics to permit access toa server computer 60 over a network. Server computer 60 includescomputer code to periodically poll dispensing units 50 over the networkto download stock level and transaction information from each ofdispensing units. This information is stored in a database that isassociated with server computer 60. Server computer 60 is furtherprogrammed to aggregate the number and types of items to be restockedinto the dispensing units, i.e., to aggregate the demand. Servercomputer 60 further aggregates the demand by suppliers for the items tobe restocked. In this way, ordering information is generated thatincludes items to be reordered, their quantities, and suppliers of theitems. The ordering information is then transmitted over the network toan application computer 62 that operates a hosted procurementapplication. The hosted procurement application may be operated at acustomer site or may be hosted over the Internet.

As shown in FIG. 4, a user computer 64 may be used to access the hostedprocurement application. User computer 64 may be any type of computercapable of communicating over a network, such as an internal network,the Internet, an intranet, an extranet, a wireless network, or the like.Conveniently, user computer 64 may include a web browser to view webdocuments transmitted from computer 62.

Such a configuration permits ordering information to be reviewed priorto sending the orders to suppliers. For example, the hosted procurementapplication may be accessed to permit an end user to approve, modify orreject orders sent from the server computer 60. For instance, the enduser may wish to change a supplier and/or a manufacturer of an item, orthe quantities being ordered. Further, the user may order additionalitems that are to be located outside of dispensers 50. For example, thehosted procurement application may provide links to various market siteswhere additional and/or different items may be electronically ordered.The hosted procurement application also permits end users toelectronically post their ordering information. Suppliers may thenelectronically bid for contracts to supply the items. Further, suppliersmay electronically advertise price lists to permit end users to modifytheir orders if more favorable terms may be obtained.

Once the order has been approved by the end user, the hosted procurementapplication contacts an electronic requisition and purchasing (ERP)system 66 having a database 68 with various financial data. ERP system66 servers as the customer's/user's financial system and is used toapprove the purchase order request from the hosted procurementapplication. ERP system 66 generates an electronic purchase order numberwhich is transmitted to the hosted procurement application.

As shown in FIG. 6, the hosted procurement application transmits theorders by supplier with the purchase order number to an e-businessportal 70 that has an associated database 72. E-business portal 70 maybe configured as a web-based host that aggregates and manages orders bysupply and supplier. Further, the host may access various markete-commerce sites through the Internet to obtain pricing and cataloginformation for the items. In this way, e-business portal 70 may be usedto obtain favorable pricing for the items in the purchase order.

As shown in FIG. 7, the host transmits the purchase order number andordering information to one or more supplier computers 74. This may beaccomplished, for example, by transmitting the information over theInternet, an extranet, or the like. Supplier computers 74 are maintainedby various suppliers that are responsible for supplying the ordereditems. For example, the suppliers may store the items in warehouses 76until ready for shipping. Hence, by use of supplier computers 74, asupplier is able to electronically receive a purchase order that wasproduced using an automated system that aggregates demand as items areconsumed.

After receiving the purchase order, the supplier determines how theorder is to be filled. This information is placed into an advancedshipping notice that is electronically sent back to application computer62 via e-business portal 70 and the hosted procurement application asshown in FIG. 8. The advanced shipping notice may include information onthe types of items being shipped, their quantities and the date ofshipment. In some cases, the supplier may not have all of the requesteditems in stock. In such an event, the advanced shipping notice mayindicate the items on back order. When these items are shipped, anotheradvanced shipping notice may be sent.

Application computer 62, in turn, sends the advance shipping notice toserver computer 60. Server computer 60 includes computer code to sendthe advanced shipping notice of items to be shipped and restocked todispensing units 50 as shown in FIG. 9. In this way, dispensing units 50are apprised of the items that are being shipped from the suppliers.Further, for items that are not intended to be stocked in dispensingunits 50, application computer 62 sends the advanced shipping notice touser computer 64 via the Internet, intranet, extranet, or the like. Inthis manner, the end user is apprised of the items being shippeddirectly to the end user.

As shown in FIG. 10, the supplier ships the item or items against theadvanced shipping notice. The shipped items may be restocked intodispensing units 50 by the supplier, an external delivery service, theend user, or the like. As the items are restocked, buttons 58 arepressed or bar-codes are read to produce a record of the types andquantities of items restocked. This information is then stored by eachdispensing unit. For items that are not stocked into dispensing units50, the supplier may ship the items directly to the end user.

As previously described, each dispensing unit 50 has a record of theadvanced shipping notice from the supplier. As shown in FIG. 11,computer 56 is used to synchronize the items restocked with the advancedshipping notice. In this way, any discrepancies between the itemsactually shipped as compared to the items that were expected to beshipped may be determined in an automated manner. Each dispensing unit50 then generates an electronic receipt using computer 56. Theelectronic receipt contains a confirmation of receipt of the itemsrestocked as compared to the advanced shipping notice. The receipt isthen transferred over the network to server computer 60. For items thatare not stocked in dispensing units 50, the end user may generate anelectronic receipt using computer 64. This receipt is then transferredto application computer 62.

Server computer 60 forwards the electronic receipt from dispensing units50 to application computer 62 where the hosted procurement applicationsends the electronic receipt to supplier computer 74 via e-businessportal 70 as shown in FIG. 12. The electronic receipt is also forwardedto ERP system 66 for comparison with the original purchase order. Inthis way, the customer's accounting department automatically receives anelectronic confirmation of shipment for comparison against the purchaseorder. Further, the supplier automatically receives the same electronicconfirmation.

With the electronic receipt, supplier computer 74 generates and sends anelectronic invoice over the network back through e-business portal 70 toapplication computer 62 as shown in FIG. 13. The hosted procurementapplication then transmits the electronic invoice to the end user's ERPsystem 66. ERP system 66 then issues payment in the form of a check,money transfer, or the like to the supplier. Hence, the inventionprovides for the automated generation of ordering information as itemsare removed for consumption. The invention also provides a convenientway to approve or modify the order and to then electronically transmitthe order request to an ERP system for purchase order generation.Suppliers are able to receive electronic purchase orders and toelectronically send advanced shipping notices. This permits automatedconfirmations of shipment to be generated and sent back to the suppliersfor generation of an electronic invoice. This invoice may then be usedto provide payment.

FIGS. 14A–14C provide flow diagrams that summarize some of the foregoingembodiments. In FIG. 14A, a method is provided for supplying items to aplurality of dispensing units. At block 1402, a plurality of dispensingunits is provided, each holding a plurality of each of multiple distinctitems. Each dispensing unit has a processor and a memory for storing arecord of inventory levels of each distinct item. At block 1404,restocking information is periodically sent from the dispensing unitsover a network to a server computer. The restocking information includesa restock quantity for each distinct item. At block 1406, the restockquantities are aggregated over the plurality of dispensing units foreach of the multiple distinct items. At block 1408, ordering informationfor the items to be restocked is generated based on the aggregatedrestocking information. At block 1410, the ordering information is sentelectronically to one or more supplier computers to order items to berestocked into the dispensing units.

At block 1412, the dispensing units are polled over the network usingthe server computer to obtain the quantities of the items to berestocked. At block 1414, the ordering information is generated usingthe server computer and supplier information is determined for the itemsto be ordered. At block 1416, the ordering information is sentelectronically from the server computer to an application computerhaving a hosted procurement application. At block 1418, the hostedprocurement application is accessed to view the ordering information ona display screen of a user computer, and one or more pages on thedisplay screen are produced to permit the ordering information to beapproved. At block 1420, the ordering information is sent from theapplication computer to an electronic requisition and purchasing system.At block 1422, one or more electronic purchase order numbers aregenerated using the electronic requisition and purchasing system and thepurchase order number is sent electronically to the applicationcomputer. At block 1424, the purchase order number and supplier numberare sent electronically from the application computer to a businessportal computer, and from the business portal computer to the suppliercomputer based on the supplier information.

At block 1426, an advanced shipping notice is sent electronically fromthe supplier computer, to the business portal computer, to theapplication computer and to the server computer. The advanced shippingnotice includes information on items to be shipped, their quantities anda date of shipment. At block 1428, information contained in the advancedshipping notice is sent electronically from the server computer to thedispensing units to apprise the dispensing units of the items andquantities to be shipped for restocking into the dispensing units. Atblock 1430, at least some of the ordered items are shipped to thedispensing units that are contained in the advanced shipping notice. Atblock 1432, information contained in the advanced shipping notice issent electronically from the application computer to the user computerfor items that are not stocked in the dispensing units. At block 1434,the shipped items are restocked into the dispensing units. At block1436, the restocked items are reconciled with the advanced shippingnotice using the dispensing unit processor. At block 1438, aconfirmation receipt is sent electronically from the server computer tothe supplier computers and to the electronic requisition and purchasingsystem. At block 1440, an electronic invoice is generated at thesupplier computer based on the receipt and sent to the business portalcomputer and the application computer. At block 1442, the electronicinvoice is transmitted from the application computer to the electronicrequisition and purchasing system, and payment is generated using theelectronic requisition and purchasing system.

In FIG. 14B, a method is provided for supplying consigned items to aplurality of dispensing units. At block 1450, a plurality of dispensingunits is provided, each holding a plurality of each of multiple distinctitems on consignment from an external supplier. Each dispensing unit hasa processor and a memory for storing a record of inventory levels ofeach distinct item. At block 1452, restocking information isperiodically sent from the dispensing units over a network to a servercomputer. The restocking information includes a restock quantity foreach distinct item. At block 1454, the restock quantities are aggregatedover the plurality of dispensing units for each of the multiple distinctitems. At block 1456, ordering information is generated for the items tobe restocked based on the aggregated restocking information. At block1458, the ordering information is sent electronically to one or moresupplier computers to order items to be restocked into the dispensingunit.

In FIG. 14C, a method is provided for supplying items to a plurality ofdispensing units. At block 1470, a plurality of dispensing units isprovided, each holding a plurality of each of multiple distinct items.Each dispensing unit has a processor and a memory for storing a recordof inventory levels of each distinct item. At block 1472, restockinginformation is periodically sent from the dispensing units over anetwork to a server computer. The restocking information includes arestock quantity for each distinct item. At block 1474, an aggregatedlist of distinct items and their associated quantities that are to berestocked is generated based on the restocking information. At block1476, a hosted procurement application is provided to permit manualselection of suppliers, manufacturers, and quantities for the items inthe aggregated list. At block 1478, ordering information is generatedfor the items to be restocked based on the manual selection using thehosted procurement application. At block 1480, the ordering informationis sent electronically to one or more supplier computers to order itemsto be restocked into the dispensing unit. At block 1482, desired itemsand quantities are posted using the hosted procurement application topermit suppliers to provide electronic quotes for supplying thesupplies. At block 1484, items that are not on the aggregated list areordered using the hosted procurement application. At block 1486,suppliers and manufacturers of items carried by the suppliers and theirassociated prices are posted using the hosted procurement application topermit manual selection of the suppliers and manufacturers.

The invention has now been described in detail for purposes of clarityand understanding. However, it will be appreciated that certain changesand modifications may be practiced within the scope of the appendedclaims.

1. A method for supplying items to a plurality of dispensing units, themethod comprising: providing a plurality of dispensing units that eachhold a plurality of each of multiple distinct items, wherein the unitshave a processor and a memory for storing a record of inventory levelsof each distinct item; periodically sending restocking information fromthe dispensing units over a network to a server computer, wherein therestocking information includes a restock quantity for each distinctitem; aggregating the restock quantities over the plurality ofdispensing units for each of the multiple distinct items; generatingordering information for the items to be restocked based on theaggregated restocking information; and electronically sending theordering information to one or more supplier computers to order items tobe restocked into the dispensing units.
 2. A method as in claim 1,further comprising polling the dispensing units over the network usingthe server computer to obtain the quantities of the items to berestocked.
 3. A method as in claim 1, further comprising generating theordering information using the server computer, and wherein the orderinginformation generating step further comprises determining supplierinformation for the items to be ordered.
 4. A method as in claim 3,electronically sending the ordering information from the server computerto an application computer having a hosted procurement application.
 5. Amethod as in claim 4, accessing the hosted procurement application toview the ordering information on a display screen of a user computer,and further comprising producing one or more pages on the display screenof the user computer to permit the ordering information to be approved,modified or canceled.
 6. A method as in claim 5, further comprisingsending the ordering information from the application computer to anelectronic requisition and purchasing system, and further comprisinggenerating one or more electronic purchase order numbers using theelectronic requisition and purchasing system and electronically sendingthe purchase order number to the application computer.
 7. A method as inclaim 6, further comprising electronically sending the purchase ordernumber and the supplier information from the application computer to abusiness portal computer, and electronically sending the purchase ordernumber from the business portal computer to the supplier computer basedon the supplier information.
 8. A method as in claim 7, furthercomprising electronically sending an advanced shipping notice from thesupplier computer, to the business portal computer, to the applicationcomputer and to the server computer, wherein the advanced shippingnotice includes information on items to be shipped, their quantities anda date of shipment.
 9. A method as in claim 8, further comprisingelectronically sending information contained in the advanced shippingnotice from the server computer to the dispensing units to apprise thedispensing units of the items and quantities to be shipped forrestocking into the dispensing units.
 10. A method as in claim 9,further comprising shipping at least some of the ordered items to thedispensing units that are contained in the advanced shipping notice. 11.A method as in claim 10, further comprising electronically sendinginformation contained in the advanced shipping notice from theapplication computer to the user computer for items that are not stockedin the dispensing units.
 12. A method as in claim 10, further comprisingrestocking the shipped items into the dispensing units, reconciling therestocked items with the advanced shipping notice using the dispensingunit processor, and electronically sending a confirmation receipt to theserver computer from the dispensing units.
 13. A method as in claim 12,further comprising electronically sending the receipt from the servercomputer to the supplier computers and to the electronic requisition andpurchasing system.
 14. A method as in claim 13, further comprisinggenerating an electronic invoice at the supplier computer based on thereceipt, and electronically sending the invoice to the business portalcomputer and the application computer.
 15. A method as in claim 14,further comprising electronically transmitting the electronic invoicefrom the application computer to the electronic requisition andpurchasing system, and generating payment using the electronicrequisition and purchasing system.
 16. A method for supplying consigneditems to a plurality of dispensing units, the method comprising:providing a plurality of dispensing units that each hold a plurality ofeach of multiple distinct items on consignment from an externalsupplier, wherein the units have a processor and a memory for storing arecord of inventory levels of each distinct item; periodically sendingrestocking information from the dispensing units over a network to aserver computer, wherein the restocking information includes a restockquantity for each distinct item; aggregating the restock quantities overthe plurality of dispensing units for each of the multiple distinctitems; generating ordering information for the items to be restockedbased on the aggregated restocking information; and electronicallysending the ordering information to one or more supplier computers toorder items to be restocked into the dispensing unit.
 17. A method forsupplying items to a plurality of dispensing units, the methodcomprising: providing a plurality of dispensing units that each hold aplurality of each of multiple distinct items, wherein the units have aprocessor and a memory for storing a record of inventory levels of eachdistinct item; periodically sending restocking information from thedispensing units over a network to a server computer, wherein therestocking information includes a restock quantity for each distinctitem; generating an aggregated list of distinct items and theirassociated quantities that are to be restocked based on the restockinginformation; providing a hosted procurement application to permit manualselection of suppliers, manufacturers, and quantities for the items inthe aggregated list; generating ordering information for the items to berestocked based on the manual selection using the hosted procurementapplication; and electronically sending the ordering information to oneor more supplier computers to order items to be restocked into thedispensing unit.
 18. A method as in claim 17, further comprisingelectronically posting desired items and quantities using the hostedprocurement application to permit suppliers to provide electronic quotesfor supplying the supplies.
 19. A method as in claim 17, furthercomprising ordering items that are not on the aggregated list using thehosted procurement application.
 20. A method as in claim 17, furthercomprising electronically posting suppliers, manufactures of itemscarried by the suppliers and their associated prices using the hostedprocurement application to permit manual selection of the suppliers andmanufacturers.